Thinking about the new dollar........by me.

[Ponce]

What will probably happen..... if with the new dollar the old dollar would probably have a ratio of 10 to 1 so that ten of the old dollar would be equal to one of the new dollar..........but.........what would happen to the nickel and specially to the pennie, think about it......that would mean that the nickel would be worth 0.45 cents and the copper pennie nine cents .......... but ........but you then would also have the metal content on this two which wll make them a lot more valuable and double and triple the price.

Remember that it has been stated that this year will be the last year that the US will be making the nickel in its present form..........RUN LIKE HELL AND GET SOME BRICK OF NICKELS.

[chad]

i've been buying bricks of nickels for a year or so because of you guys. my wife looks at them and thinks i am batshit crazy.

[Sparky]

I'm in the camp that says that the country that control's the world's currency does NOT make a new dollar.

Having said that, I don't understand the "mechanics" of new money. If today a pizza costs $8, and then I create these new 10:1 dollars, do all the retailers lower their prices by 90% to accommodate the valuation change? I realize it's a sham, but how is it intended to work?

And it's interesting what Ponce brings up about coins in general. How is that supposed to work? Does a quarter-dollar remain 25% of the old dollar, such that the buying power of the coin (irrespective of metal content) gets reduced by 90%?

And what was the role of coinage during the Zimbabwe hyperinflation? Did those maintain their purchasing power because of their metal content?

[osoab]

Ponce, you got your numbers off, but I think your heading along the correct lines.

If we get a 10 to 1 devaluation of the currency, a nickle would be worth $0.005 (.05/10) and a penny would be worth $.001 (.01/10) at face value. I believe the value of both would go through the roof when the devaluation occurs due to the exploding metal prices that underlie both coins. (probably on the black market though) The sky might be the limit in the price explosion.

[Dogman]

What will probably happen..... if with the new dollar the old dollar would probably have a ratio of 10 to 1 so that ten of the old dollar would be equal to one of the new dollar..........but.........what would happen to the nickel and specially to the pennie, think about it......that would mean that the nickel would be worth 0.45 cents and the copper pennie nine cents .......... but ........but you then would also have the metal content on this two which wll make them a lot more valuable and double and triple the price.

Remember that it has been stated that this year will be the last year that the US will be making the nickel in its present form..........RUN LIKE HELL AND GET SOME BRICK OF NICKELS.


If as said in your post, if the new dollar is not a direct replacement of the old one, get ready for the fires to light up across the world, and states.

That is why prepping is so important! Stock up on everything , and then some, If nothing happens you do not loose a thing, just use your stocks of what you have and be confident knowing that when you replace what you used , and need to buy again the prices will be higher! So it is a good investment to do for the good and bad.

And there really is not a top end on preps, so far as time of need and use.. keep stocking!

Over all as I said you will not loose a dam bit of wealth stocking, if the world does not burn to the ground
all you need to do is use your stocks of supply's and if it does burn you are prepaired at least until you run out! And then what?

A Thought!

[Ponce]

Sparky? YES in Rhodecia the loose change became more valuable for its metal contend and where many would not take paper they would coins........and that's one reason as to why I hold a LOTTTTTTT of loose change.

Osoab? I don't believe that the coins will go down in value to .005 like you wrote for the simple reason the the paper money is made by the FED and the coins by the US Treasury department so that I am sure that the US government will back up its coins.

I want you guys to have a plan, behind the plan, behind the plan just as I do.

Get ready today and you will be safe tomorrow..........

[Sparky]

Interesting excerpt from the Wiki page on Zimbabwe coins:

In 1980, coins were introduced in denominations of 1, 5, 10, 20, 50 cents and 1 dollar. The 1 cent coin was struck in bronze, with the others struck in cupro-nickel. In 1989, bronze-plated steel replaced bronze. A 2 dollar coin was introduced in 1997. In 2001, nickel-plated steel replaced cupro-nickel in the 10, 20 and 50 cents and 1 dollar, and a bimetallic 5 dollar coin was introduced.
...
All old coins dating from the first dollar were reintroduced at face value to the third dollar in Aug 2008, effectively increasing their value 10 trillion-fold...[].

It's hard to get your head around this. I think essentially what it means is that the coinage would continue to maintain its purchasing power.

Let's go back to my $8 pizza. Currently, it would cost 160 nickels. If a new dollar USN was introduced at 10 times the value of the current USD, presumably the pizza would cost $0.80 USN or $8.00USD. The nickels would technically be re-valued at $.005 USN, so it would still cost 160 nickels. However, if nominal prices were not change by the same 10:1 ratio, then the nickel would start to increase buying power, regardless of its "declared" fiat value. So if the new "market value" of the pizza in new currency became, say $4, it would cost 800 nickels in terms of face value, but only 80 nickels in terms of metal melt value.

It's very difficult to understand the meaning of a dollar revaluation without knowing how pricing would change. The coinage might not make you rich, but it might keep you from getting screwed like everyone else. Problem is, it's hard to convert a substantial portion of your total assets into coinage to the point where it would make a substantial difference. If you were to convert $100,000 to nickels, you might win big under a particular scenario. Alternately, under other scenarios you could simply be stuck holding and storing 2 million freakin' nickels, and losing all credibility with your friends and loved ones. ;D

[Ponce]

Well Sparky, I hold between $10,000 and $12,000 in nickels........not only will my nickels will always be nickels but is only one of my plans behind my plans.....like I say "Be ready for all and afraid of none"... Ponce

[willie pete]

Well Sparky, I hold between $10,000 and $12,000 in nickels........not only will my nickels will always be nickels but is only one of my plans behind my plans.....like I say "Be ready for all and afraid of none"... Ponce


$10,000-$12,000 in nickels? :o ...that's a lot of Cu you got there Ponce ;D

[Book]

Well Sparky, I hold between $10,000 and $12,000 in nickels...



http://archive.southhillrotaryclub.org/bell_ringers1a.jpg

:oo-->

[Joe King]

Interesting excerpt from the Wiki page on Zimbabwe coins:

In 1980, coins were introduced in denominations of 1, 5, 10, 20, 50 cents and 1 dollar. The 1 cent coin was struck in bronze, with the others struck in cupro-nickel. In 1989, bronze-plated steel replaced bronze. A 2 dollar coin was introduced in 1997. In 2001, nickel-plated steel replaced cupro-nickel in the 10, 20 and 50 cents and 1 dollar, and a bimetallic 5 dollar coin was introduced.
...
All old coins dating from the first dollar were reintroduced at face value to the third dollar in Aug 2008, effectively increasing their value 10 trillion-fold...[].

It's hard to get your head around this. I think essentially what it means is that the coinage would continue to maintain its purchasing power.

Let's go back to my $8 pizza. Currently, it would cost 160 nickels. If a new dollar USN was introduced at 10 times the value of the current USD, presumably the pizza would cost $0.80 USN or $8.00USD. The nickels would technically be re-valued at $.005 USN, so it would still cost 160 nickels. However, if nominal prices were not change by the same 10:1 ratio, then the nickel would start to increase buying power, regardless of its "declared" fiat value. So if the new "market value" of the pizza in new currency became, say $4, it would cost 800 nickels in terms of face value, but only 80 nickels in terms of metal melt value.

It's very difficult to understand the meaning of a dollar revaluation without knowing how pricing would change. The coinage might not make you rich, but it might keep you from getting screwed like everyone else. Problem is, it's hard to convert a substantial portion of your total assets into coinage to the point where it would make a substantial difference. If you were to convert $100,000 to nickels, you might win big under a particular scenario. Alternately, under other scenarios you could simply be stuck holding and storing 2 million freakin' nickels, and losing all credibility with your friends and loved ones. ;D
Of course it would. The thing with coins is that there are simply too many of them already out there. Add that to the fact that you'd have to replace them all with new coins sufficiently different from the old ones to prevent people spending the old ones as new ones and it'd be cheaper to just leave the coins be while assuming that most people won't have piles of them.
All people have some, yes. But not hoards of them.


Personally, I don't believe a revaluation will occur in that fashion. {old Bills for new}

[Spectrism]

There won't be a new dollar. If you want to buy or sell with the New World Order currency, you will literally have to pledge your soul to the beast. It will be digitally controlled. External exchanges or trades or bartering will be outlawed. Even gifting will become illegal. Transaction taxes will not be implemented right away so that people think it is a free service.

Instead of thinking how to win IN the money system, plan to be out of it.

[chad]

There won't be a new dollar. If you want to buy or sell with the New World Order currency, you will literally have to pledge your soul to the beast. It will be digitally controlled. External exchanges or trades or bartering will be outlawed. Even gifting will become illegal. Transaction taxes will not be implemented right away so that people think it is a free service.

Instead of thinking how to win IN the money system, plan to be out of it.


spot on. we've been prepped for it with debit cards, gift cards, pay online, etc. for years. people will willingly accept it.

[Hatha Sunahara]

Sparky,


If today a pizza costs $8, and then I create these new 10:1 dollars, do all the retailers lower their prices by 90% to accommodate the valuation change? I realize it's a sham, but how is it intended to work?

Prices will go down following the law of supply and demand. Different things have different elasticity, meaning your ability or willingness to do without them. Food, electricity, gasoline are 'inelastic' meaning that demand doesn't respond robustly with price changes. It's likely that prices for food, electricity and gasoline will not go down by 90% in a devaluation of the dollar. Also, prices for imported things would not go down at all. Pretty much everything we use is imported. Imagine that, having 1/10th the dollars and everything stays the same price. I'd have to stop spending money on sh*t that I don't need.

I would assume that in the event of a dollar devaluation, most people here on GSUS would be interested in what would happen to the price of gold or silver. I would think that there would be no interruption in the bull market for these pm's.

Also, your bank account balance would be cut by 90%. Loan balances that you owe likely would be recalculated according to some formula prescribed by the lenders.

The whole point of devaluing the currency is to impose 'austerity' on the population. There is nothing available to impose austerity on the bankers or the government. On thing we'll all be hearing a lot of is 'we're all in this together'.

And I think buying silver if you can get it is a better hedge than buying nickle bricks.

Hatha

[Ponce]

Pete?...... you must be the dog looking at my nickels hahahahahahahaha

Book? ........I already donated one of my silver first born to them....... ;D......with tears in my eyes :boohoo

Suhanara? .......In Rhodesia when you bought a meal you paid for it right away because by the time that you finished it could had gone up another 10%

[Joe King]

Are we talking about a revaluation, or a devaluation?

Seems that both terms are being used in this thread to represent the same thing.


AFAIK, if prices stay on par, the only reason to have done the revaluation {10 old for 1 new as in the OP} is to get rid of zeros off the end because inflation has already run rampant.

We haven't reached the point yet of needing to condense to that degree, the purchasing power of our "money".
That'll happen when bread costs $50 a loaf, and they want it reset back to merely $7.49 a loaf.

[chad]

Sparky,


If today a pizza costs $8, and then I create these new 10:1 dollars, do all the retailers lower their prices by 90% to accommodate the valuation change? I realize it's a sham, but how is it intended to work?

Prices will go down following the law of supply and demand. Different things have different elasticity, meaning your ability or willingness to do without them. Food, electricity, gasoline are 'inelastic' meaning that demand doesn't respond robustly with price changes. It's likely that prices for food, electricity and gasoline will not go down by 90% in a devaluation of the dollar. Also, prices for imported things would not go down at all. Pretty much everything we use is imported. Imagine that, having 1/10th the dollars and everything stays the same price. I'd have to stop spending money on sh*t that I don't need.

I would assume that in the event of a dollar devaluation, most people here on GSUS would be interested in what would happen to the price of gold or silver. I would think that there would be no interruption in the bull market for these pm's.

Also, your bank account balance would be cut by 90%. Loan balances that you owe likely would be recalculated according to some formula prescribed by the lenders.

The whole point of devaluing the currency is to impose 'austerity' on the population. There is nothing available to impose austerity on the bankers or the government. On thing we'll all be hearing a lot of is 'we're all in this together'.

And I think buying silver if you can get it is a better hedge than buying nickle bricks.

Hatha


see, you're an optimist. i always figured they would revalue your dollar by 90% but keep the debts at the exact same level.

that's what they did in 1964 when silver was removed. your savings got debased, but your mortgage balance stayed exactly the same.

[Ponce]

In the future you will see the nickel going into "The Twilight Zone" as it goes into the banks because the government themselves know the melt value of it and will try to get back as much of it as it can.

[cthulu]

The new "dollar" is probably already here. You use credit and debit cards. If you want to buy some gas, it gives you 10 cents. If you want some gold coins from ebay, use credit rebates and paypal and your debit %1 credit to get gold as less than cost. Isn't life great?

[Ponce]

cthulu..........the next step will be a credit card where everyting that you earn will go there and everything that you spend will come out of there, but of course I could be wrong and they could use an implant.

[gunDriller]

"In Dog we Trust

http://gold-silver.us/forum/index.php?action=dlattach;attach=5155;type=avatar

Legal Tender for All Debts Public & Private

One Dog Dollar"


I was too lazy to Photoshop it into a One Ounce Silver Round.

Maybe that would be the G-S.us round people talk about - the 1 Ounce .9999 Fine Dog Silver Round.

Which would obviously be worth more than the US $$.


http://auntiestreasures.com/images/Sterling-Silver-Round-High-Polished-HOLLOWBACK-Charm-With-PAWPRINT-Cutout-Approximately-1-inch-For-You-Or-Your-Pet.jpg

http://lynncoins.com/2006-dog-silver-canada-coinj.JPG

I guess someone already thought of it.

[7th trump]

There won't be a new dollar. If you want to buy or sell with the New World Order currency, you will literally have to pledge your soul to the beast. It will be digitally controlled. External exchanges or trades or bartering will be outlawed. Even gifting will become illegal. Transaction taxes will not be implemented right away so that people think it is a free service.

Instead of thinking how to win IN the money system, plan to be out of it.

Actually Spec,
There will be money in physical form. You can obtain these "devil dollars" as I call them by bartering to buy the things you need. Using them does in no way affect your salvation in that way.
I will say you are correct that saying you will pledge your soul or giving allegience to this fake christ to buy and sell, to gain acceptence to the system only.
Theres nothing to say you cannot sell a lawnmower to a neighbor or clean the neighbors gutters and get "devil dollars" for it and then run to the store to purchase milk or eggs or gasoline. This is not pledging your soul. This is simple bartering.
You pledge your soul by accepting this fake christ by woreshipping him as the real Christ (aka....taking the number of the beast).

[Sparky]

There won't be a new dollar. If you want to buy or sell with the New World Order currency, you will literally have to pledge your soul to the beast. It will be digitally controlled. External exchanges or trades or bartering will be outlawed. Even gifting will become illegal. Transaction taxes will not be implemented right away so that people think it is a free service.

Instead of thinking how to win IN the money system, plan to be out of it.


It will be tough to avoid the system indefinitely when the suppliers (e.g. grocery stores and other retailers) will only accept beast currency. It's one thing to prep for lack of availability; it's even tougher to live outside the system when the system "appears" to be working fine and supplies are available.

[madfranks]

And what was the role of coinage during the Zimbabwe hyperinflation? Did those maintain their purchasing power because of their metal content?


I have a friend who is a native of South Africa bordering Zimbabwe, and he said that people with coins had purchasing power that people with paper did not, but it's wasn't strictly based on the face value of the coins. He said they kind of became "money tokens" where even if the coin said one cent, five cents, ten cents, that you could get varying amounts of stuff for each. So a kid can come in to one store with a handfull of copper coins and be offered three eggs, then the next store will offer him two eggs, and maybe the next guy would offer him four eggs. So it was subjective, each vendor would offer a merchandise value equivalent to what they valued the copper at.